Tourism Satellite Account
New economic measure of tourism
The importance of tourism to the New Zealand economy is verified in a new report released by the Government
Statistician. Currently the tourism sector is not identified in official industry statistics as it cuts across
conventional industry boundaries.
The report, Tourism Satellite Account 1995, establishes a method for examining and measuring tourism's economic impact
on the New Zealand economy and also presents experimental results for 1995. The satellite account provides a framework
for bringing together data about the industry from different sources. The key measures derived from the account will
provide the yardstick against which the performance of the industry can be assessed. Key results to emerge from the
report include:
Tourism directly contributed $2.9 billion, or 3.4 per cent, to New Zealand's Gross Domestic Product (GDP) in 1995. This
can be compared to the contribution of conventional industries such as agriculture (5.6 per cent), construction (3.5 per
cent) and communications (3.0 per cent).
If the indirect flow-on effects are also included - and these occur when tourism industry providers such as transport
firms, hotels and restaurants purchase goods and services from their suppliers - then a further $4 billion of GDP (4.6
per cent) was generated.
Total spending in New Zealand by all tourists was $9.1 billion for the year ended March 1995. Of this $4.3 billion was
spent by overseas visitors and $3.5 billion by New Zealand households travelling for recreation and pleasure, while the
remaining $1.3 billion was spent on travel by business and government.
The $4.3 billion spent by international visitors to New Zealand accounted for 15.8 per cent of total export earnings
for 1995, more than any other export category.
An estimated 58,000 full-time equivalent persons were engaged in directly producing goods and services consumed by
tourists. Another 60,000 full-time equivalent persons were indirectly engaged in supporting tourism.
Canada, the USA and Norway are the three other countries that have Tourism Satellite Accounts. Tourism is clearly more
significant as a share of the economy in New Zealand than in other countries.
Although the statistics relate to 1995, the overall picture they present is not thought to have changed markedly since
then. It is planned to update the figures for 1999. The methodology presented in Tourism Satellite Account 1995 is based
on guidelines developed by the Organisation for Economic Co-operation and Development (OECD) and the World Tourism
Organisation.
Len Cook
GOVERNMENT STATISTICIAN
23 June 1999